Before you start trading, there are important things that you need to consider aside from your trading fund. Among these are the Forex indicators that you will use in your MetaTrader 4 trading platform. If you search online, you will see a bunch of indicators with fantastic features. However, you cannot use all of these to become a successful trader, just like how you imagine yourself to be. The best thing you should do is to identify a few of the best indicators available and know how to use them to maximize their potential.
Why do you need MetaTrader 4 as your trading platform in Forex trading?
Yes, there are a lot of trading terminals available nowadays. But among these, MetaTrader maintains its popularity even after so many years since its launch. In fact, according to statistics, MT4 is preferred by more than 90% of Forex traders today.
The Secret of the Success of MetaTrader 4
The overwhelming success of MT4 after all these years is truly commendable. But why is that so? There is a newer version, the MetaTrader 5, but why is it that MT4 is still widely used?
The popularity of MT4 can be somehow attributed to its ease of use especially to those who are new to the industry, or those non-professional traders. This trading platform is also widely distributed by dealing centers as well as Forex brokers. Other than that, there are these tools that Forex traders love to use – the scripts, technical indicators, and the trading robots. When you check other trading platforms, you won’t see an option that allows you to install robots and scripts.
Four Main Types of Indicators
There are several categories that traders use when trading Forex, commodities, and cryptocurrency. Each category has a specific function and knowing the most appropriate category to be used on your strategy lets you enjoy its full potential.
Trend Indicators are used to determine the current trend’s direction and also allows you to notice each movement that the trend reversal makes each time. The indicators are the ones you see lining up in the chart, as it moves parallel into the price that often intersects with the price and when you change your position. These are called crossovers and they indicate a change in the trend.
Known as the second most popular indicator, Oscillators are found in separate windows just below the price chart. Although apart, their readings are very relative. Similar to those trend indicators, they are primarily built on a price basis.
Another most used indicator in Forex trading is the volume indicator. They are very useful in determining the investor’s interests given a particular asset and also helps in understanding the changes in the price made by the real interest of investors or through speculative manipulations.
This indicator also includes useful tools that are providing information to users but are unable to provide direct signals as to when you should enter the market. An information indicator may also appear as an economic calendar that provides information as to when important news gets released on MetaTrader 4.